Which of the Following Statements Is False

question 10

Multiple Choice

Which of the following statements is false?

• A) The standard deviation is the square root of the variance.
• B) Because investors dislike only negative resolutions of uncertainty, alternative measures that focus solely on downside risk have been developed, such as the semi-variance and the expected tail loss.
• C) While the variance and the standard deviation are the most common measures of risk, they do not differentiate between upside and downside risk.
• D) While the variance and the standard deviation both measure the variability of the returns, the variance is easier to interpret because it is in the same units as the returns themselves.

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Definitions:

Supply Chain

The entire system of producing and delivering a product or service, from the supplier of raw materials to the customer.

Logistics Management

The part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption.

Amazon

An American multinational technology company that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence, one of the world's largest online retailers.

Fulfillment Centers

Large warehouses that process and ship orders for goods, playing a critical role in e-commerce and supply chain logistics.